Season 18 – Week 1
Source: Australian Wool Exchange (AWEX)
Week 1 marked the start of the 2018/19 wool selling season.
This sale corresponds with the beginning of the new financial year and is traditionally one of the larger sales on the roster, as sellers holding wool for tax purposes enter the market.
Wool held over for the new selling season was significant, with wool older than 180 days representing just over at third of the national offering (and nearly 57 percent of the Western Region offering).
This year in the opening sale 43,880 bales were offered to the trade.
The softer market tone that was evident in the previous sale was apparent from the outset and corrections were felt across the entire merino spectrum, on all types and descriptions.
As is often the case in a falling market, it was off-style types, wools with poor additional measurement results and those carrying excessive vegetable matter that were most affected.
By the end of the week prices had generally fallen by 50 to 90 cents, with some off-style types over 120 cents cheaper.
The benchmark Eastern Market Indicator (EMI) lost 62 cents for the series, closing at 1,994 cents.
This was the largest weekly fall in the Eastern Market Indicator since August 2012.
Many sellers were reluctant to accept the reduction in prices, this was reflected in a national passed in rate in of over 15 percent, up over 9 percent on the previous week.
The skirtings also suffered large corrections, prices generally fell by 50 to 100 cents, lots carrying more than 5.0 percent vegetable matter most affected.
Although the oddments attracted excellent buyer support, most types fell by 5 to 15 cents, wool finer than 18.5 micron least affected.
Next week is the final sale before the annual mid-year three-week recess.
Quantities have slightly reduced.
Currently there are 41,431 bales rostered, with selling in Sydney, Melbourne and Fremantle.